Employment Rights Bill

(Limited Text - Ministerial Extracts only)

Committee stage
Wednesday 18th June 2025 Lords Chamber

[Baroness Chakrabarti (Lab)]

Yes, I would.

[Lord Sharpe of Epsom (Con)]

My Lords, that was a most interesting exchange, and I thank the noble Baroness, Lady Chakrabarti, and my noble friend Lord Jackson for it. As I have said many times, I am not a lawyer, but as a broader observation, there seems to be a slight philosophical discussion developing this evening between intervention and initiation when it comes to various state interventions in certain areas of law.

I have no doubt at all that the intention behind the noble Baroness’s amendment is to strengthen the enforcement of equal pay laws. As she rightly says, we all support that objective, but we feel that this particular proposal is somewhat flawed, not least because we just do not think it will work. At its core, the amendment risks conflating pay disparity with unlawful discrimination. It assumes that if a pay gap exists, there must therefore be wrongdoing. As the noble Baroness, Lady Chakrabarti, acknowledged, it is not that simple, because pay disparities can and often do arise for entirely legitimate reasons, such as differences in experience or qualifications, performance geography or even negotiated terms, to my noble friend Lord Jackson’s point. To suggest that a mere statistical difference is indicative of discrimination is to abandon the nuanced legal framework carefully set out in the Equality Act 2010. While paying a great deal of respect to the arguments—and there is considerable merit in this—we cannot support this amendment.

[The Minister of State, Office for Equality and Opportunity (Baroness Smith of Malvern) (Lab)]

My Lords, like my noble friend Lady Chakrabarti, I am also an occasional visitor to this Committee, but I am very pleased to be here this evening to address her Amendment 275. I thank her for recognising the engagement there has been with the Government and others on this up to this point.

Certainly, the Government want to make very clear that we share the broad aims behind this amendment. Over 50 years after the Equal Pay Act 1970 and 15 years after the Equality Act 2010, it is clear that equal pay has not yet been achieved. That is why the Government have committed to strengthen the equal pay regime and end pay discrimination. I share the concerns of my noble friend in identifying the challenge of enforcement in this case. There is more we can do to ensure that the onus does not fall only on women to find out whether they are receiving the same pay as their male colleagues for equal work and to take enforcement action against employers in the case of a breach.

It is possible to envisage, in relation to the points made by the noble Lord, Lord Jackson, a system in which you have both the contractual arrangement and the ability to take individual action as is the case now and an enforcement body that supports people doing that in general terms and identifies thematic or consistent ways in which equal pay is being breached. That is why the Government are committed to establishing an equal pay regulatory and enforcement unit with the involvement of trade unions. As part of this, we will carefully consider how we can improve the enforcement of the equal pay scheme.

On 7 April we launched a call for evidence on this issue and wider equality law to ensure that any steps we take will lead to a meaningful strengthening of protections against pay discrimination—an objective that I am sure my noble friend will share. It is important that the Government are able to develop these changes in partnership with business, trade unions and civil society to ensure that the law works for everybody. For that reason, I hope my noble friend will recognise that this will be a more appropriate process through which to address these issues. As she suggests, we will give these areas very close consideration in advance of the equality, race and disability Bill.

In relation to some of the specific points my noble friend raises about the way this might operate, we certainly recognise the benefits that can arise from government departments, including HMRC, working together. HMRC already has a number of joint working and data-sharing arrangements with departments and agencies. The Government are therefore not closed in principle to establishing new data-sharing arrangements with regulatory authorities where this can support their regulatory functions.

My noble friend made a very interesting point about the use of AI. It would not be sufficient simply to compare the pay of different people working within a workplace unless you could also have some analysis of how that applied to the nature of the work and whether that was work of equal value. It may well be that advances in technology, including AI, would be a way in which we could support that monitoring.

Policy is at a very formative stage. My officials will explore a wide range of options to improve the enforcement of equal pay rights. While taking great care to ensure that safeguards are put in place in relation to personal data, particularly where that relates to discrimination and protected characteristics, I suspect the sort of description that she gave of the contribution of AI is very much part of what, across government, we are wanting to see in terms of its use in future.

We are sympathetic to the ultimate objectives of my noble friend’s amendment. I hope she recognises that and the progress that we intend to make on that pledge to deliver stronger enforcement mechanisms and, in particular, an equal pay regulatory and enforcement unit. With that assurance, I hope she feels able to withdraw her amendment.

[Baroness Chakrabarti (Lab)]

My apologies to the Committee. It has of course been 75 years since the European Convention on Human Rights and 50 years since equal pay legislation—forgive that rather glaring howler. I am grateful to the noble Lord, Lord Jackson, in particular, and to my noble friend the Minister, whose officials have been very generous and thoughtful with their time. I look forward to watching their thinking develop on this forthcoming legislation. With that, I beg leave to withdraw.

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[Lord Hunt of Wirral (Con)]

My Lords, I thank my noble friend Lady Coffey for her amendment. She raises thoughtful and important questions about Parliament’s role as an employer and the complexity of managing the site, which contains over 600 other employers. These are legitimate concerns that deserve proper consideration, not least because Parliament should seek to model best practice in matters of employment and compliance. I think we all agree with that, but does it comply, and should there be a power of entry into these premises to check that we are complying?

My noble friend has made compelling points, and I hope that the Minister will respond with clarity and detail. The concerns that my noble friend outlined are not theoretical; they touch on the credibility of this institution as both lawmaker and employer. I therefore look forward to hearing the Minister’s response and the Government's justification for retaining—or reconsidering—the exemption as drafted.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords, I thank the noble Baroness, Lady Coffey, for her amendment, which raises an important topic: how the enforcement provisions in Part 5 would apply to Parliament and MPs as employers.

Parliament must of course comply with employment legislation. However, the Bill provides that the powers of entry in Part 5 cannot be exercised in relation to

“premises occupied for the purposes of either House of Parliament”;

otherwise, Part 5 would apply to both Houses of Parliament and to MPs as employers. We are in danger of having something similar to—but slightly less than—a deep constitutional crisis, because the approach was agreed on the advice of the House authorities. It is therefore not a government decision; it is a decision made by the House authorities. They are more powerful, as far as I can see, and they can therefore overrule what the Government may think about all this.

This approach is not unusual. It aligns with recent precedents, such as Section 165(1)(a) of the Building Safety Act 2022, to respect parliamentary privilege. In this case, Parliament has to comply with employment legislation. The only issue raised here is about the power of entry not applying to the Parliamentary Estate. The noble Baroness might understand why we want to make sure that the Parliamentary Estate is secure from that challenge, and there is probably another place where she could raise her concerns about employment in the Parliamentary Estate. I have some sympathy with some of the cases that she argued about, but I suggest that she sees the House authorities about them. I therefore ask the noble Baroness to withdraw her amendment.

[Baroness Coffey (Con)]

I certainly will withdraw it. I did not mean to put the Minister in a difficult place, and her answer was very gracious. My amendment was based on the expectation that this is a royal palace, where things such as licensing laws and health and safety rules do not technically apply. However, that aside, we still need to consider how we act. If nothing else, I hope that this short debate has contributed to reminding ourselves of the obligations that we all share. With that, I beg leave to withdraw.

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Moved by

[Lord Sharpe of Epsom]

279ZZB: After Clause 146, insert the following new Clause—
“Impact assessment on enforcement of holiday pay compliance(1) The Secretary of State must, within 12 months of the day on which this Act is passed, lay before Parliament an impact assessment of the ability of businesses to comply with the enforcement provisions of this Act relating to holiday pay entitlements.(2) The assessment under subsection (1) must include—(a) an evaluation of the practical, administrative and financial implications for employers in meeting the requirements relating to holiday pay,(b) consideration of the capacity of small and medium-sized enterprises to comply with those requirements, and(c) an analysis of any barriers to compliance identified during implementation.”Member’s explanatory statement
This amendment places a duty on the Secretary of State to assess how effectively businesses—particularly small and medium-sized enterprises—are able to comply with the enforcement mechanisms relating to holiday pay under this Act, and to identify any practical barriers or burdens.

[Lord Sharpe of Epsom (Con)]

My Lords, I will speak to Amendments 279ZZB and 305 to 309, which are in my name.

Turning first to Amendment 279ZZB, we firmly support the principle that workers must receive their full entitlement to holiday pay and that those rights must be enforceable. However, we believe that achieving that goal in practice, particularly under the new framework set out in the Bill, requires us to be clear-eyed about the real-world challenges that many businesses face. Holiday pay is one of the most complex areas of employment law and has only become more so following the changes introduced in January of this year.

While some employers regrettably seek to avoid their obligations and should rightly being sanctioned, the reality is that many more are simply trying to navigate a legal framework that is very confusing, technical and still evolving. For small and medium-sized enterprises in particular, compliance is not always a question of willingness but of capacity and clarity. That is why this amendment is both timely and proportionate: it asks only that the Secretary of State undertakes an impact assessment to consider how businesses—particularly SMEs—are coping with the new enforcement provisions. It would require an evaluation of the practical, administrative and financial implications of compliance and establish whether any barriers have emerged during implementation.

Crucially, this is not about weakening enforcement. In fact, it is quite the opposite: it is about ensuring that the fair work agency, which we hope will become a cornerstone of enforcement under this Bill, is properly resourced, modernised and equipped to support both workers and employers in meeting their obligations.

Turning to Amendment 305, this Government have managed to get unemployment to hit its highest since the pandemic—4.6%, according to the most recent ONS figures. This is not a figure that we can shrug off because, of course, behind it are real lives, real households and real businesses that are facing uncertainty. At the same time, the business environment is under considerable strain. Recent changes to national insurance contributions have forced employers to make extremely difficult decisions. The employer rate has risen from 13.8% to 15% and the threshold has been lowered, placing even greater pressure on payrolls.

Research from S&W has shown that around a third of UK business owners are still planning further job cuts as a direct result of these changes. Many have already begun reducing headcount. Others are cutting hours, freezing pay or raising prices—moves that will impact both employees and consumers. So, the question that has to be asked is: how will this legislation affect employment in that context? I should also have mentioned, of course, that May showed a very significant drop in payroll numbers.

It is easy to sit in Westminster and write these rules. It is much harder to understand how the rules will play out in towns and factories, in small businesses, in hospitality, in logistics, and across the many sectors that make up our labour market. That is why this amendment is vital.

I turn to Amendment 307. The British Retail Consortium has warned of a potential “high-street bloodbath”, with one in 10 retail jobs at risk over the next three years, if the Bill’s measures are implemented without careful consideration. Retailers are already grappling with rising costs and squeezed margins, and these additional employment burdens could accelerate job losses in an industry that is vital to our economy. I believe that 180,000 jobs—I forget the precise number—are at risk through to 2028, according to the BRC.

Similarly, the Institute of Directors has published stark findings showing that nearly three-quarters of its members—72%—believe that this legislation will dampen economic growth. Some 49% of business leaders say they plan to reduce hiring; 36% of them intend to outsource more roles; and 52%, more than half, anticipate investing further in automation as a response. These figures paint a clear picture: employers are preparing to scale back on job creation and are likely to replace human roles with technology, in response to rising costs and compliance demands.

The Federation of Small Businesses echoes these concerns. SMEs are the backbone of the UK economy, yet many are telling us that the cumulative impact of new regulations, increased national insurance contributions and rising wage floors are forcing them to reconsider recruitment plans or even reduce existing staff. The FSB has called for a more balanced approach that safeguards workers’ rights without stifling the very businesses that create these jobs, and the growth. Can the Minister name a single business that expects to increase hiring because of the measures in the Bill?

On Amendment 306, what of our youth? At a time when the Government should be prioritising opportunities for young people entering the workforce, the figures are concerning. Between January and March 2025, an estimated 354,000 young people aged 16 to 24 were not in education, employment or training; that is up by 21,000 compared with the same period last year. The Government will no doubt argue that the provisions in this Bill, such as the right to guaranteed hours and changes to statutory sick pay, are designed to protect vulnerable workers, many of whom are young and may be on the margins of employment. However, the reality is more complex. Although well intentioned, these changes will make it more costly and complicated for employers to hire young people, who often lack the experience and are seeking flexible or part-time work to get started in their careers. The burden of additional costs and rigidities can discourage employers from offering entry-level roles or apprenticeships—exactly the opportunities that young people desperately need to develop skills and build work histories.

On Amendments 308 and 309, let me turn to a specific sector in the UK: manufacturing. In the north-west, manufacturing is not only a significant contributor to the regional economy but a vital source of skilled employment and innovation. Many manufacturers there are actively seeking to invest in advanced technologies, including artificial intelligence and automation, to improve productivity and to remain competitive on the global stage. However, these ambitions risk being undermined by the additional costs and compliance burdens imposed by this Bill. Manufacturers are already grappling with the challenges of global tariffs, supply chain disruptions and inflationary pressures; adding further regulatory and financial strain threatens to hollow out this critical sector.

If the increased labour market enforcement and associated costs become too great, there is a real risk that manufacturers will reduce investment, scale back hiring or even relocate operations. The knock-on effects on local economies, particularly in regions depending on manufacturing, would be severe, affecting jobs, skills development and regional growth. While the objectives of the Bill—to protect workers’ rights and promote fair employment practices—are indeed laudable, we must ensure that they do not come at the expense of vital industries and communities. I beg to move.

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[Lord Leong (Lab)]

I thank the noble Baroness for that. Figures go up and down every month but let us look at it in the longer term. We are creating new jobs and that is what is really important. In conclusion, I ask the noble Lord, Lord Sharpe, to withdraw his amendment.

[Lord Sharpe of Epsom (Con)]

I am enormously grateful to the Minister for his passionate defence of his Government and for his remarks. I am genuinely delighted that he has taken on a new role in small business because, unlike the vast majority of his Government, he actually knows what he is talking about when it comes to small business. We are very pleased to hear that and we welcome his general remarks. I also agree with Jamie Dimon about the growth agenda, but the fact is the Bill will not help the growth agenda. That is the argument we are trying to make.

I am also grateful to the noble Lord, Lord Goddard, for his remarks. He accused me of being doomy and gloomy, but I did not get those statistics out of thin air; they were all supplied by the employer organisations that we referenced. If he would like, I will happily put him in touch with them all. The fact is that, once again, the Minister could not rise to the challenge of naming a single business that expects to increase hiring because of the measures in the Bill, and references to the strategic defence review do not help that argument.

The other reason why I am doomy is because, the other day, I came across a notice in a window in London that said, “After much reflection, and as a result of the substantial business rate and national insurance cost increases imposed on us in this year’s Budget, we have made the difficult decision to close. Our final day of service will be 28 June 2025”. That is a real business going out of business—that is disgraceful.

The Government’s impact assessment of the Bill, which we have debated a number of times and which I know irritates the Minister every time we bring it up, was simply inadequate. There is not enough detailed rigorous analysis to understand how these enforcement measures will affect businesses and employment across the country. Without that, we are walking blindly into serious economic risks. At this rate, if the Bill proceeds without the necessary amendments and safeguards, it will not just fall short, it will create unemployment. The additional burdens on employers, especially small and medium-sized businesses and crucial sectors like manufacturing, threaten to reduce hiring, stall investment and ultimately cost jobs. This is not speculation; it is happening, as my noble friend Lady Noakes pointed out. It is a clear and present danger based on the evidence that we have seen, and the trend is unlikely to diminish.

We support workers’ rights, but not at the expense of widespread job losses and economic harm. The Government have to provide a proper, thorough impact assessment—one that honestly addresses these risks—before we proceed further. I am grateful to the noble Lord for his offer of a meeting to discuss this, but I am not sure what there is to discuss without the actual impact assessment or the commitment to hold it as soon as possible. If this does not happen, the Bill will fail both workers and employers, and we will face the consequences of higher unemployment as a result. That is something no one wants. I beg leave to withdraw the amendment.

Amendment 279ZZB withdrawn.

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Moved by

[Baroness Jones of Whitchurch]

279A: Schedule 11, page 290, line 19, at end insert—
“(2) Any reference in section 134 to HMRC information includes a reference to any information mentioned in sub-paragraph (1)(a) or (d) which—(a) was disclosed to the Director of Labour Market Enforcement or a person falling within paragraph (a), (d), (e), (f) or (g) of paragraph 6(4) by the Commissioners for His Majesty’s Revenue and Customs or a person acting on behalf of the Commissioners, and(b) was not obtained by an officer in the course of acting for the purposes of the National Minimum Wage Act 1998 or by virtue of section 26(2) of the Immigration Act 2016.”Member's explanatory statement
This amendment provides for information previously disclosed by HMRC to enforcement authorities, and treated by paragraph 13 of Schedule 11 to the Bill as having been obtained by the Secretary of State in connection with the exercise of enforcement functions under Part 5 of the Bill, to be treated as HMRC information for the purposes of clause 134, which imposes restrictions on the onward disclosure of such information without authorisation from HMRC.

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Moved by

[Baroness Jones of Whitchurch]

279C: Clause 148, page 145, line 31, leave out from ““employee”” to end of line 32 and insert “means an individual who is an employee within the meaning of section 230(1) of the Employment Rights Act 1996 or Article 3(1) of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16));”
Member's explanatory statement
This amendment is consequential on my amendments of clause 148 at page 146, line 43 and page 147, line 9.

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[Baroness Lawlor (Con)]

My Lords, I support Amendment 279GA for a sunset clause. I perfectly understand the reason for extending the period in which employees can make claims, but I am quite sure it will increase the burden on the tribunals. We have heard about the very long delay, with even preliminary hearings not scheduled until April 2026, and these delays have continued for some years. People going to tribunal sometimes have to wait more than 18 months just to have the preliminary hearing. If numbers increase, as they are likely to, as my noble friend suggested, it is going to put far more pressure on the tribunals. The parliamentary oversight proposed and the sunset clause must take account of that.

Not only is there no point in law in having a claim left unsettled for years, but it is very bad for business to have the uncertainty. It is very bad for employees and their lives to be subject to such delays and uncertainties in what is going to happen to them professionally, because taking a claim to tribunal is not an easy matter. It can be expensive and full of obstacles. Not knowing how it will pan out is very worrying for people. For businesses, being subject to constant pressures of claims in a tribunal, whether they are justified or not, brings insecurity and a lack of confidence.

For these reasons, I think this moderate request for a sunset clause and coming back to Parliament for an affirmative vote are a good proposal, and I hope the Government will listen kindly to it.

[Baroness Jones of Whitchurch (Lab)]

I thank the noble Lord, Lord Hunt, for introducing these amendments, but I say to him that the problem he has described so vividly was one we inherited from the previous Government. We are acutely aware that these issues need to be addressed, and I share his desire to ensure that the employment tribunal system can manage its existing caseload and the potential increase from the Bill’s measures. I assure your Lordships that we are working across government and with business and the unions to identify ways to improve a system that we inherited that is not working currently for anyone.

We are already recruiting more judges and legal case workers and providing additional resources to ACAS. On top of that, we are considering other things, such as the role that the expanded fair work agency could play in reducing the time spent awaiting costly and lengthy tribunal claims.

I would be delighted to receive any constructive suggestions from the noble Lords on this issue, but it would be entirely disproportionate to make the vital improvements to workers’ rights contained in the Bill dependent on the kind of review that their amendments propose. It would be wrong to take workers’ rights to challenge unfair practices away from them when they are not to blame for the backlog that we are currently grappling with.

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[Baroness Lawlor (Con)]

The Minister made reference to the number of judges that the Government are busily recruiting so as to help the backlog, and this is part of the Government’s response. Of the 35,000 extra civil servants recruited since March 2024—these are the March 2025 figures—how many are judges, and how many of them will be in the employment tribunal service? I do not expect the Minister to have the figures to hand, but I would be pleased if she could write to me.

[Baroness Jones of Whitchurch (Lab)]

My Lords, 50 new fee-paid employment judges were appointed in 2024-25, and a further three recruitment exercises to further increase capacity are now being undertaken in 2025-26.

[Lord Hunt of Wirral (Con)]

My Lords, I am very grateful to my noble friend Lady Lawlor for putting all this in the context of the security or insecurity of workers right across the board faced with this terrible backlog. The Minister upbraided me for the previous Government’s culpability in this, but she will know that we have been expressing serious concern about this backlog for a very long time. The fact is that it has got worse: it is 20% up on what it was when the Government came into office last year. The Minister was quite right to say there was a backlog, but my plea to her is not to make it worse.

As we draw this debate to a close, I worry that the Government have not fully grasped the critical importance of these amendments. They are not obstacles to progress but necessary safeguards to ensure that the rights we are creating are not rendered ineffective by an overwhelmed tribunal system. We urgently need clarity on the implementation plans.

The Minister promised that we would have the implementation plan “shortly”. The definition of “shortly” is “within the next hour or so”. In the dictionary, we are told that shortly means that something is about to happen. So where is it? I would like to believe that the noble Baroness’s reference to the word, which she must have carefully considered, means that tomorrow we will get it. I am very happy for her to interrupt me if I am incorrect—perhaps she could clarify.

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[Baroness Jones of Whitchurch (Lab)]

I was trying to be helpful to the noble Lord, but since he provokes me, I will simply say that I have used my interpretation of “shortly”, rather than the dictionary definition. It will not be happening in the next hour, I can assure the noble Lord of that.

[Lord Hunt of Wirral (Con)]

Could I possibly have a copy of the noble Baroness’s dictionary? She has just quoted from her dictionary, but sadly I do not have it to hand. We would all like to see the implementation plan, so please can we, if possible, before our next day in Committee next Tuesday?

There are all sorts of issues we have discussed that have not been answered. Why a measured approach between day one and two years? Was it ever seriously considered? There has been no answer from the noble Baroness on that. Did she look at it or did she move straight to day one? The gap in reasoning leaves many of us deeply worried about the unintended consequences for workers and employers alike. Regrettably, these are crucial issues which remain unresolved, and the Government have yet to provide the assurances we need. As we approach Report, we will have to return to this matter with a determination to secure the clarity and commitments that are so essential if the Bill is ever to be successful. I beg leave to withdraw the amendment.

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[Lord Jackson of Peterborough (Con)]

My Lords, I will be very brief. I feel like the support act, really, because the substance, the meat, of this issue and this clause has been debated, although I am delighted that this is the final schedule and the final part, so we are on the final stages of the Bill. I just say very briefly, with respect, to the Minister, that we often ask the Minister to write to elucidate the remarks that she and her colleagues have made in the course of the Committee’s proceedings. We are watching that and making sure that we do get replies and, if we do not get proper replies, we will raise those issues on Report. I do hope, very gently, that the Minister is aware of that. Of course, we understand that information is not always at her disposal or her colleagues’ disposal, but we will need that information in order to make an informed decision on Report if the House divides at that juncture.

The second issue that I think it is appropriate to raise, raised several Committee days ago by my noble friend Lady Coffey, is impact assessments. The Cabinet Office guidelines say that impact assessments should be updated as the Bill goes through. To the best of my knowledge, that has not happened, and I am not sure that the Minister has satisfactorily answered the question that my noble friend asked earlier. With that in mind, I think that the rationale that the Minister used for the extension from three to six months was not even tepid and not even weak; it was just non-existent. To say that the Law Commission has done a consultation I do not think cuts the mustard. We on this side believe firmly that extending that period will bring more uncertainty to business, will be more costly, will encourage more litigation and workplace strife and will be a false economy.

I look over at the Government Benches and I see the pawprints of the trade unions in this. I do not know why they would want to do this, but, as on so much of the Bill, they are seemingly pulling the strings and I think that, in the end, it will not be in the best interests of workers for this to happen, not least because, as my noble friend Lord Hunt of Wirral said, the system is creaking. It is no good saying, “Oh, well, it was creaking under you”; this Government have been in power 12 months now, it is incumbent on them to fix the system with their legislation and I think that this is a retrograde step. It will not work, it will backfire, and on that basis, I think that neither Clause 149 nor Schedule 12 should stand part of the Bill.

[Lord Sharpe of Epsom (Con)]

My Lords, most of what I needed to say was said in the last group, so I will not labour the points, except to add a bit of colour, because my noble friend Lord Hunt of Wirral and I consult quite widely. We consulted this morning with a distinguished employment lawyer, who told us that, if you apply now to an employment tribunal, you will have no chance at all of getting even a preliminary hearing for 10 months. That is next April. In order to get a resolution, a case resolved, you would be looking probably at December 2027. That is nearly two and a half years away. It will take a lot more than the number of judges the noble Baroness mentioned that they have recruited so far in order to fix that particular problem. I wish her good luck and I hope she succeeds, but I really do not think that we should be doing this.

[Baroness Jones of Whitchurch (Lab)]

My Lords, the first thing I will say to the noble Lord, Lord Jackson, is that if we say we are going to write, we will write: we do not need to be told that this is being monitored in some way. I would say that I feel that we on these Benches have bent over backwards to engage with noble Lords, not only in debates but outside, by having meetings and trying to work through some of these issues in more detail. So I do resent the accusation that we are somehow hiding from accountability on these issues. We are bending over backwards to be accountable.

I also say to the noble Lord, Lord Jackson, that we have updated the impact assessment and written to the noble Baroness, Lady Coffey, about it already. As noble Lords have said, we have now debated this issue quite extensively. We argue that the proposals we are putting forward will benefit not only employees but employers, by increasing the time within which workplace procedures and conciliation can be completed, creating an opportunity for more disputes to be resolved without the need for litigation.

Current ACAS performance data shows that that around a third of early conciliation notifications go on to submit an employment tribunal claim. Therefore, the longer period of time for resolving disputes internally and/or via conciliation will simplify the time limits for making employment tribunal claims and improve access to justice.

I have heard the arguments of the noble Lord, Lord Jackson, and, as I say, we have now debated this extensively. I can assure your Lordships that this clause and schedule are essential for those who need to bring a claim to a tribunal in order to have adequate time to prepare a robust claim. I therefore ask that they stand part of the Bill.

Clause 149 agreed.

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Moved by

[Baroness Jones of Whitchurch]

279H: Schedule 12, page 298, line 17, at end insert—
“Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006
13A In the Schedule to the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006 (S.I. 2006/349) (employment rights and protections in connection with consultation), in paragraph 4(2)—(a) in paragraph (a), for “three” substitute “six”;(b) in paragraph (b), for “three” substitute “six”.”Member’s explanatory statement
This amendment extends from three to six months the time limit for bringing a claim in an employment tribunal under paragraph 4 of the Schedule to the Occupational and Personal Pension Schemes (Consultation by Employers and Miscellaneous Amendment) Regulations 2006.

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[Lord Sharpe of Epsom (Con)]

My Lords, I thank my noble friend Lady Noakes for so expertly introducing her amendment, and I welcome the contribution from my noble friend Lady Penn regarding the establishment of an employment law advisory committee.

We believe my noble friend’s amendments would significantly strengthen the framework for effective and balanced labour market regulation. The creation of a dedicated advisory committee, modelled on the Social Security Advisory Committee, seems a prudent and timely measure. It would provide the Secretary of State with expert independent advice that draws from a diverse range of perspectives: employers, workers, and independent experts alike. This inclusive composition is vital to ensuring that any regulations developed under the enacted Bill are well-informed, fair and workable in practice.

Moreover, the proposed committee’s clear statutory function to scrutinise draft regulations before they are laid before Parliament would introduce an important additional layer of oversight and transparency. It would help to ensure that regulations and the views of all relevant stakeholders are carefully considered. The requirement for the Secretary of State to publish the committee’s report alongside any laid regulations, including an explanation when recommendations are not followed, would enhance accountability and public confidence in the regulatory process.

In sum, we think that these amendments represent a balanced and constructive approach to policy-making in the complex area of employment law. They would help guard against rushed or poorly considered regulations, support better policy outcomes and uphold the principles of consultation and transparency that are essential to good governance.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the noble Baroness, Lady Noakes, for her Amendments 299 and 300. The Government have already committed to consulting on the detail of implementation and have already undertaken extensive engagement with employers, businesses and workers’ representatives, trade unions and experts. We will continue with this approach as we develop our secondary legislation.

There are some specific instances, such as in the enforcement space, where we are proposing setting up an expert group. Upgrading the enforcement of workers’ rights is an important and complex task, where it is right to draw on expertise from businesses, workers and independent representatives.

That is why the Bill requires the Secretary of State to establish an advisory board. It will play a critical role in providing advice and insight to the Secretary of State on their enforcement function under Part 5 of the Bill, which they will in practice deliver through the fair work agency. This is a proportionate and necessary step to help ensure the agency’s effectiveness. But this is not required across the Bill and wider labour market legislation as a whole. The committee proposed by the noble Baroness would be a repetition of the planned engagement and consultation on the Bill. We have already engaged with more than 190 different stakeholder organisations on our Plan to Make Work Pay, including employers of all sizes, from SMEs to large corporations, trade unions and representative organisations representing thousands of businesses and millions of workers.

We have held round-table discussions focused on particular topics, such as zero-hours contracts, and with particular groups, such as leaders of small businesses or retailers. As a Government, we are committed to engaging closely on our plans, and we will continue to do so. This engagement will continue throughout implementation, including as we develop regulations under the Bill.

On parliamentary scrutiny, the Select Committees will of course scrutinise the government proposals and reforms as they are rolled out. The Economic Affairs Committee had an inquiry on the labour market, and the noble Baroness was herself a member of that committee, so we know that there are already bodies in the parliamentary network that can be used to provide that scrutiny. On the basis of our proposed consultation and the parliamentary scrutiny available, I ask the noble Baroness to withdraw her Amendment 299.

[Baroness Noakes (Con)]

My Lords, I will not detain the Committee for long. With the exception of the expert group, which I was not aware of, I could have written the Minister’s speaking notes myself. They ran along the lines of, “Blah, blah, blah, consultation; blah, blah, blah, Select Committees” and, basically, “We know best”.

My amendment was a genuine attempt to try to enhance the process of parliamentary scrutiny. As I am sure the Minister is aware, Select Committees are simply not set up to deal with the detail of secondary legislation; they are set up to do some things very well—usually broader-ranging topics such as those undertaken by the Economic Affairs Committee of your Lordships’ House—but they never attempt to look at secondary legislation. I can see a lot of secondary legislation coming down the line and the need for a better process and greater information to help Parliament in its job on that.

I am not surprised by the Minister’s response. Before we get to Report, I will consider again what to do with my ideas, which I had hoped would be constructive contributions to the Government’s Bill. I beg leave to withdraw.